SINGAPORE – Asia-Pacific equities were mixed in trading on Wednesday, with investors watching the market’s reaction to the release of a private survey of Chinese factory activity in May.
Shares in mainland China were mixed, with Shanghai Composite below the flat line, while Shenzhen Component was up 0.419%. Hong Kong’s Hang Seng Index fell 0.74%.
China’s Caixin / Markit Manufacturing Purchasing Managers’ Index for May stood at 48.1 on Wednesday, up from April 46, but still below the level 50 that separates expansion from contraction.
We are in a relatively quiet period, there has been a risky environment that has been triggered by a certain degree of openness in China.
Manishi Raychaudhuri
head of Asia-Pacific Equity Research, BNP Paribas
China’s official manufacturing PMI for May, released on Tuesday, was 49.6, an improvement over the April reading of 47.4. The May reading was above the expected 48.6 level of a Reuters poll.
PMI readings are sequential and represent a month-to-month expansion or contraction.
Japan’s Nikkei 225 gained 0.61% while the Topix index rose 1.19%.
In Australia, the S & P / ASX 200 was up 0.11%. Australia’s gross domestic product grew by 0.8% quarter-on-quarter in terms of seasonally adjusted chain volume during the first quarter, according to data from the country’s Statistics Office on Wednesday. This was above expectations in a Reuters poll for a 0.5% gain.
The broader Asia-Pacific equities index outside of Japan traded 0.41% below.
“We are in a relatively quiet period, there has been a risky environment that has been triggered by a degree of openness in China,” said Manishi Raychaudhuri, head of Asia-Pacific capital research at BNP. Paribas, CNBC’s “Street Signs.” Asia “Wednesday.” There have also been comments, a narrative that risk perception is too high among institutional investors. “
“That being said, we must also keep in mind that we are now on the verge of a period of severe monetary policy tightening,” he added. “We have to prepare for the impact at least, you know, in the next quarter or so.”
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Markets in South Korea close on Wednesday for holidays.
Overnight on Wall Street, the S&P 500 was down 0.63% to 4,132.15. The Dow Jones Industrial Average fell 222.84 points, or 0.67%, to 32,990.12. The high-tech Nasdaq Composite fell 0.41% to 12,081.39.